Asbury Automotive Group Inc (ABG)

Financial leverage ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Total assets US$ in thousands 10,337,000 10,173,600 10,306,000 10,131,500 10,159,400 8,255,000 8,165,900 8,182,800 8,021,400 7,816,300 7,638,800 7,860,100 8,002,600 3,571,400 3,524,900 3,582,300 3,676,300 3,530,600 2,934,400 3,069,200
Total stockholders’ equity US$ in thousands 3,502,000 3,362,400 3,330,700 3,346,900 3,244,100 3,248,500 3,068,500 3,049,200 2,903,300 2,642,800 2,410,400 2,182,500 2,115,500 1,301,300 1,148,300 998,000 905,500 811,900 713,100 660,900
Financial leverage ratio 2.95 3.03 3.09 3.03 3.13 2.54 2.66 2.68 2.76 2.96 3.17 3.60 3.78 2.74 3.07 3.59 4.06 4.35 4.11 4.64

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,337,000K ÷ $3,502,000K
= 2.95

The financial leverage ratio of Asbury Automotive Group Inc has been showing a decreasing trend from March 31, 2020, where it was at 4.64, to December 31, 2024, where it decreased to 2.95. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and investments over the years. A lower financial leverage ratio suggests a stronger financial position and lower risk of financial distress, as the company is less reliant on debt financing. However, it is important to note that a very low financial leverage ratio may also imply missed opportunities for leveraging debt to potentially boost returns. Overall, the decreasing trend in Asbury Automotive Group Inc's financial leverage ratio signals a more conservative approach to capital structure management.